April 28, 2025 16:55

Dow has widened the scope of its European asset review, first launched last fall and initially focused on polyurethane raw materials, to now include ethylene, chlor-alkali, and vinyls production. The decision was announced alongside the group's Q1 2025 earnings results.

Facing high energy costs and intensive operating requirements, Dow is examining options for its ethylene cracker in Böhlen, Germany, which could either be temporarily idled or permanently shut down. Chlor-alkali and vinyls operations at Schkopau, Germany, are also under scrutiny, with similar potential outcomes. Meanwhile, the group has already decided to close its siloxane production plant in Barry, United Kingdom.

A final decision on the fate of these European facilities is expected by mid-year.

In addition, Dow has postponed—though not cancelled—the start of construction for its Path2Zero net-zero emissions ethylene cracker in Fort Saskatchewan, Canada.
The $6.5 billion project will include a new cracker, retrofitting of the existing one to meet net-zero targets, and the addition of new polyethylene capacity totaling 2 million tonnes per year.

“The significant impact of slower GDP growth and volatile market conditions on our industry underscores the importance of our proactive management and best-owner mindse,” said Jim Fitterling, Dow’s chairman and CEO. “Today’s announcements build on Dow’s cost actions that are already underway, aiming to further strengthen our financial flexibility and support a balanced capital allocation approach.”

For the first quarter, Dow reported a 3% drop in sales to $10.4 billion, with declines across all segments. Volumes rose by 2% year-over-year, except in Latin America, while average selling prices slipped by 3%. Operating earnings (EBIT) came in at $230 million, down $444 million from Q1 2023, largely due to lower prices and higher raw material and energy costs, partially offset by stronger volumes.

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